| > Wouldn't you still need some sort connection to the greater network to use a credit card? Nope. Reminder for those new to how credit cards actually work, there are two distinct transactions and they are not connected. Authorization transactions establish that this is, in fact, really a credit card issued by BIG BANK, and optionally that some credentials you've got are genuine (e.g. a PIN for modern chip and PIN cards, or a 3-4 digit security code for a remote payment). Authorization aims to protect merchants from crooked customers and to some extent to protect banks from crooked merchants. Nobody cares about the customer, if you want protecting ask your government. Settlement transactions move money from the customer's account to the merchant's account. An offline credit card terminal may be able to perform some limited Authorization with chip cards in particular, it can confirm that the chip card says this is the correct PIN for example, but regardless it can begin the Settlement transaction. Now, the Settlement won't actually happen immediately, but eventually the transactions are batched up and sent to a bank and the bank executes them, and the settlements occur. Debit cards can need an online transaction because the card may be unwilling to authorise the Settlement process if it can't confirm you actually have the money, as these cards may be issued to people who aren't allowed credit. |